Financial Accounting
3rd Edition
ISBN: 9780078025549
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Chapter 2, Problem 2.4E
Analyze the Impact of transactions on the
Boilermaker House Painting Company incurs the following transactions for September.
1. Paint houses in the current month for $15,000 on account.
2. Purchase painting equipment for $16,000 cash.
3. Purchase office supplies on account for $2,500.
4. Pay employee salaries of $3,200 for the current month.
5. Purchase advertising to appear in the current month, $1,200.
6. Pay office rent of $4,400 for the current month.
7. Receive $10,000 from customers in (1) above.
8. Receive cash of $5,000 in advance from a customer who plans to have his house painted in the following month.
Required:
For each transaction, describe the dual effect on the accounting equation. For example, for the First transaction, (1) assets increase and (2) stockholders’ equity increases.
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1. Listed below are selected transactions of Schultz Department Store for the current year ending
December 31:
HINT:
Chapter 12: Customer Advances, Example 12.12
Unearned Revenues, Example LO 12.2
REQUIRED:
Prepare journal entries for the transactions listed below:
3A).
On December 5, the store received $500 from the Selig Players as a deposit to be
returned after certain furniture to be used in stage production was returned on January
15.
3B).
3C).
3D).
During December, cash sales totaled $798,000, which includes the 5% sales tax that
must be remitted to the state by the fifteenth day of the following month.
On December 10, the store purchased for cash, three delivery trucks that cost
$120,000. The trucks were purchased in a state that applies a 5% sales tax.
The store sold 25 gift cards for $100 per card. At year-end, 20 of the gift cards are
redeemed. Schultz expects three of the cards to expire unused.
LOR
Read through the transactions impacting JumpStart Co. and answer the question below:
On November 10, JumpStart Co. provides $2,900 in services to clients. At the time of service, the clients paid $600 in cash
and put the balance on account.
On November 20, JumpStart Co. clients paid an additional $900 on their accounts due.
Document the journal entries that reflect the November 10 and 20th transactions.
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Chapter 2 Solutions
Financial Accounting
Ch. 2 - Prob. 1RQCh. 2 - 2.List the steps we use to measure external...Ch. 2 - 3.Each external transaction will have a dual...Ch. 2 - 4.Describe the impact of each of these external...Ch. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - 10.Suzanne knows that an increase to an expense...
Ch. 2 - 11.What is a journal? What is a journal entry?Ch. 2 - Prob. 12RQCh. 2 - Prob. 13RQCh. 2 - Prob. 14RQCh. 2 - 15.Describe the events that correspond to the...Ch. 2 - 16.What does a T-account represent? What is the...Ch. 2 - Prob. 17RQCh. 2 - Prob. 18RQCh. 2 - Prob. 19RQCh. 2 - 20.If total debits equal total credits in the...Ch. 2 - List steps in the measurement process (LO21) Below...Ch. 2 - Balance the accounting equation (LO22) Using the...Ch. 2 - Suppose a local company has the following balance...Ch. 2 - Analyze the Impact of transactions on the...Ch. 2 - Understand the effect of debits and credits on...Ch. 2 - Prob. 2.6BECh. 2 - Record transactions (LO24) The following...Ch. 2 - Prob. 2.8BECh. 2 - Analyze T-accounts (LO25) Consider the following...Ch. 2 - Prob. 2.10BECh. 2 - Prob. 2.11BECh. 2 - Correct a trial balance (LO26) Your study partner...Ch. 2 - Listed below are several terms and phrases...Ch. 2 - Prob. 2.2ECh. 2 - Analyze the Impact of transactions on the...Ch. 2 - Analyze the Impact of transactions on the...Ch. 2 - Understand the components of retained earnings...Ch. 2 - Indicate the debit or credit balance of accounts...Ch. 2 - Associate debits and credits with external...Ch. 2 - Prob. 2.8ECh. 2 - Identify transactions (LO24) Below are recorded...Ch. 2 - Prob. 2.10ECh. 2 - Record transactions (LO24) Bearcat Construction...Ch. 2 - Correct recorded transactions (LO24) Below are...Ch. 2 - Correct recorded transactions (LO24) Below are...Ch. 2 - Prob. 2.14ECh. 2 - Post transactions to T-accounts (LO25) Consider...Ch. 2 - Identify transaction (LO25) Below are T-accounts....Ch. 2 - Prob. 2.17ECh. 2 - Prepare o trial balance (LO26) Below is the...Ch. 2 - Prob. 2.19ECh. 2 - Prob. 2.20ECh. 2 - Below is a list of activities for Jayhawk...Ch. 2 - Prob. 2.2APCh. 2 - Prob. 2.3APCh. 2 - Prob. 2.4APCh. 2 - Refer to the transactions described in P24A. Keep...Ch. 2 - Prob. 2.6APCh. 2 - Prob. 2.7APCh. 2 - Prob. 2.8APCh. 2 - Prob. 2.9APCh. 2 - Analyze the impact of transactions on the...Ch. 2 - Prob. 2.2BPCh. 2 - Prob. 2.3BPCh. 2 - Record transactions (LO24) Flip Side of P25B Eli...Ch. 2 - Prob. 2.5BPCh. 2 - Prob. 2.6BPCh. 2 - Prob. 2.7BPCh. 2 - Prob. 2.8BPCh. 2 - Prob. 2.9BPCh. 2 - Prob. 2.1APCPCh. 2 - Prob. 2.2APFACh. 2 - Prob. 2.3APFACh. 2 - Prob. 2.4APCACh. 2 - Prob. 2.5APECh. 2 - Prob. 2.6APIRCh. 2 - Prob. 2.7APWC
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